If Doug is on budget constraint C in the graph shown, what would cause it to shift to budget constraint B?
This graph shows three different budget constraints: A, B, and C.
A. Doug loses his job.
B. Doug finds soda at a warehouse outlet for a lower price.
C. Doug's grocery store raises the price of milk by 10 percent.
D. Doug’s grocery store has lowered all prices by 33 percent.
D. Doug’s grocery store has lowered all prices by 33 percent.
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Refer to Table 2-15. What is George's opportunity cost of cultivating a garden?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated D) one and a half lawns mowed
What is the opportunity cost of 1 ton of apples for the nations of Argentina and Brazil, respectively?
A. 4 tons of oranges and 2 tons of oranges
B. 2.5 tons of oranges and .4 tons of oranges
C. .25 tons of oranges and .5 tons of oranges
D. 2 tons of oranges and 4 tons of oranges
Which of the following statements best expresses why economic efficiency should be society's first goal?
A. Since the consensus on what is a fair distribution of goods is impossible, efficiency is the next best goal. B. Efficiency gives the poor an incentive to improve their economic status. C. Efficiency maximizes total economic surplus and thereby allows other goals to be more easily achieved. D. People are not really concerned about the problems of the poor, so government must address them instead.
When revenues exceed expenditures
a. there is a budget surplus b. there is a budget deficit c. the government must create more money d. the government is forced to issue more bonds to raise money